Sugar Crisis: Pakistan’s competition watchdog raids on sugar mills association offices


Web Desk
Competition Commission of Pakistan (CCP) has carried out a search and inspection of the Pakistan Sugar Mills Association (PSMA) offices in the capital, Islamabad and the estern city of Lahore as a part of an ongoing enquiry into the possible anti-competitive activities in the sugar industry,
The CCP authorized its officers to the ‘Enter and Search’ PSMA premises under Section 34 of the Competition Act, 2010 following indications of PSMA’s anti-competitive activities including, but not limited to, the collective stoppage of crushing in season 2019-20, collective rise in prices of sugar, and collective refusal to supply sugar to Utility Store Corporation (USC) as recently reported.

Two different teams, authorized by the Commission, simultaneously carried out the search in PSMA’s Islamabad and Lahore premises and impounded the relevant record, the CCP spokesman said on Monday.
Through its various enforcement orders, the CCP warned industry associations from indulging in activities, which may violate the Competition Act. The rule of thumb is that the associations are not allowed to discuss, deliberate or share sensitive commercial information that may allow its members, who are competitors, to co-ordinate business policy or discussion on economic aspects.


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